For families with more than two properties, these three situations may be ushered in
Preface: In recent years, China's property market has seen a more significant **, and it is expected that after 2024, housing prices will continue. By January next year, the average price of second-hand housing in Hong Kong was 15,230 per square meter, down 056%, which is already a 21-month decline. Li Ka-shing predicted in 2018 that the property market would undergo a "big reshuffle", and now this situation has begun to be revealed. Residents of more than two properties will face greater difficulties and impacts. This paper explores this issue and analyzes three scenarios in the future.
Decreased liquidity of the property.
In China, the number of listings of second-hand homes has skyrocketed, such as Zhengzhou, Wuhan, Qingdao, Tianjin, which have sold more than 150,000, and Chongqing has exceeded 250,000. The sales of second-hand homes are becoming increasingly severe, and even in cities like downtown Shanghai, it is difficult to buy more than 20% of the market. Due to the deepening of the regulation of the real estate market, the liquidity of housing nationwide will be more serious, so that people who own a large number of houses in their hands will face difficulties in not being able to cash in, and finally have to watch the value of their property continue to decline and lose their ability to liquidate.
Stretch ahead: In addition, as the real estate market continues to adjust, many homeowners will face a dilemma: sell or keep. For example, some second-hand house owners have to sell due to factors such as urgent need for money, but due to the illiquidity of the property market, it is difficult to carry out housing transactions. Against this backdrop, people who own multiple homes may need to be more cautious when facing the realization of their assets in the future. Due to the declining liquidity of properties, it is necessary for residents to make more detailed financial planning to reduce the risks that may occur.
Rates continue**.
For residents with more than two properties, the pressure on them to hold a home will continue to rise. First of all, many people bought a lot of homes before the pandemic, and the pressure on mortgages has not eased due to problems such as declining incomes and unemployment after the pandemic. This creates a greater financial burden for those who own multiple homes and copes over a long period of time. In addition, due to the increase in the number of houses, households will have to bear expenses such as strata fees, heating costs and maintenance**, which will increase year by year. Conversely, multi-dwelling occupants will be more indebted and will take more money and effort to maintain and manage.
Continuing to stretch: As more and more people face the pressure of homeownership, it will be necessary for many to rearrange their financial plans and lifestyles. For example, you can rent out some of these properties for a fixed income, or you can reduce your debt by increasing your investment. In addition, it is also important for family members to strengthen their financial management concept and plan their expenses to cope with various unexpected situations. In the face of the increasing burden of housing loans, Chinese residents should cautiously evaluate their financial situation and make appropriate adjustments to their asset allocation in a timely manner to avoid the occurrence of financial risks.
The real estate market is constantly changing.
Many people think that in the future property market, there will be a situation where first-tier cities will decline and third- and fourth-tier cities will decline. Housing in third- and fourth-tier cities accounts for a small proportion of household income, and there is less room for decline; In first- and second-tier cities, the proportion of housing to income has reached more than 40, indicating that its quality has brought great difficulties to people to buy housing. In the future, urban housing** will gradually be linked to the income of residents, which means that multi-family households will face a continuous decline in the market value of their assets and a decline in their investment income.
Continuation Text: At a time when the housing market is shrinking, it is important for Americans to carefully evaluate their wealth allocation and investment strategies. It is necessary to be more diversified in choosing different methods of investment, to diversify them and reduce their dependence on real estate. On this basis, enterprises can also make investment decisions in a timely manner according to their own actual situation and according to their own actual situation. In addition, for vacant properties, residents can also use the property leasing or other methods as appropriate to obtain sustainable cash flow and appreciation opportunities. Through reasonable financial management and financial planning, the financial burden and risk caused by the decline in property value can be better reduced.
The conclusion is that in the case of more than 2 houses in China, the current property market regulation will bring many problems, including the deterioration of liquidity, the increase in the pressure of housing holding, and the continuous decline in property value. To this end, Chinese residents should cautiously make a reasonable evaluation of their economic situation and property distribution, make reasonable investments in their own property, and make corresponding decisions in a timely manner to reduce the risks they face. In an uncertain market, prudent investment choices and rational investment will be an important way for families with multiple homes to face various difficulties.